Bangalore University 2008-4th Sem B.Com English

Liabilities Cltd D Ltd. Assets C Ltd. D.Ltd
Rs. Rs. Rs. Rs.

Equity share 1,50,000 1,50,000 Land and Buildings 1,00,000 1,50,000
(15,000 shares )
Reserves and Surplus 50,000 1,00,000 Plant and Machinery 1,50,000 1,25,000
12% Debentures 1,00,000 1,00,000 Stock 75,000 75,000
Creditors 60,000 60,000 Debtors 25,000 50,000
Cash 10,000 10,000
3, 60,000 4,10,1000 3,60,000 4,10,000

C Ltd. and D Ltd. amalgamate their business and form a new company called DC Ltd. The assets of both the companies are valued as follows:

Fixed Assets 25% more
Stock 15% less and
Debtors 10% less

The purchase consideration is discharged by the problem to both companies, sufficient number of equity shares of Rs.10 every in DC Ltd. at an agreed value of Rs.12.50 per share.

compute purchase consideration and state the number of equity shares issued to every company.

8. subsequent is the Balance Sheet of E ltd., as at 31.03.2008.

Liabilities Rs. Assets Rs.

Equity share Capital Land and Buildings 1,00,000
20,000 shares Plant and Machinery 50,000
Of Rs.10 every 2,00,000 Stock and Debtors 75,000
12% Debentures 1,00,000 Cash 10,000
Creditors 50,000 P & L A/c 1,15,000

3,50,000 3,50,000
Eltd. is liquidated and a new company called F Ltd., is formed. The new company takes over only the fixed assets and 12% debentures of E Ltd,. The Land and Buildings and Plant and Machinery are revalued at Rs.1, 75,000 and Rs.40, 000 respectively.

Eltd, realized stock and debtors at Rs.45, 000 and discharged creditors at 5% discount. Liquidation expenses came to Rs.1, 500.

Earning:   Approval pending.